Grey imports

[Bike Mob]

Bruce I'm with you 100%.

 

This not only damaged the New market prices (competition is fine) but also the 2nd hand market. We are all keen for a bargain' date=' but somewhere someone else is paying the price. as Bruce explained in this case it is the Official Distributor.

 

If you take a scenario like this you 'll see why it's damaging:

 

Joe walks into official shop and buys official product for 9K

Je uses the product for a year and wants to upgrade. Say, for arguements sake, he should lose 30 percent to depreciation.

 

He wants to sell for R6K.

But Jimmy Grey Boy has them new for 7K.

 

Joe now has to lose even more money to sell his wheels and why would he want to? So he either keeps them or takes a huge knock.

 

Grey importing does not just affect the first time buy or new price...but all the trickle down sales as well...

[/quote']

Sorry but this argument is exactly the same as major international motor manufacturers made when charging UK customers UK prices that where typically 5000UKP more per new car than offered the EU customers. Government got involved UK prices where forced down, and second hand prices went through the floor..... second hand prices are a fair reflection of true value, against marketing driven value of new - how else do you explain a 30% loss as soon as the product leaves the show room? That 30% loss is effectively 'ego' value, being the first owner of an overpriced product, something which manufacturers are all to happy to charge, and some fools all to happy to pay............

 

I'm not for one second advocating price fixing, but the Official distributors investment and stock etc... come at a price. If profitability of the Official importer fails, and there is zero backup for the grey importers, what then happens to your defective product? Fair enough CWC sorts theirs out, but on a larger scale?

 

As was said it could be an antiquated business model, but if we can force the prices lower via direct importing why cant we privatise the fuel price?

[Gobbo]

I think cool heat are the mavic agents in s.a.

Try get hold of them , maybee they can shed some light o the matter.

We are getting ripped in this country.

[Ox_Wagon]

Wow, serial numbers! What will they think of next!<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

 

Bummer, I cant find any serial numbers on any of the wheels I own, they must be all pirated!

 

Maybe we should get JB to give us some info on the serial numbers on hubs and rims of all the wheels he has build.  I personally have not seen any serial numbers on the shimano/campy hubs and the assortment of rims that I own.

 

  

[Jules]

The world is changing. If the official distributor builds all the extra costs into his price, perhaps he shouldn't. Perhaps he should change his pricing model? Just a thought.

 

 

 

For example, Andrew McLean apparently does good business from people who bought bikes cheaply elsewhere, but subsequently realise that those shops don't offer the kind of backup service that's required. As long as he charges accordingly (and I'm sure he does) for this extra service, everybody is happy.

 

 

 

 

 

 

 

 

[JoeK]

He He, just got this idea, maybe we should start a poll and see who thinks Puzzler is direct opposition for CWC and who thinks otherwise...

 

To me it feels we as South Africans are always at the shorter end of things. Why is it that only in SA Campaq is more expensive than shimano?

 

Second hand bicycles is suppose to be cheap so that even those who wants to participate but can't afford a bike will be able to ride and be competitive if so be.

 

100% with Willehond, cycling is a sport, for some a hobby. If you buy to invest, get your head checked.

 

 

[AndreZA]

In Europe there are no Mavic agents. All shops deal directly with Mavic HQ so that the prices can be kept low and spares can be plentyful.

 

 

[PPWTF]

 

 

Tarmac I think this is hitting on a problem that is global - the web has transformed retail. I mentioned the motor trade, I could also mention the music business and the online download of music Vs sales of CDs.....

 

Thing is, when a manufacturer develops a product that obviously cost money, some of that cost, for both materials and the 'talent' is factored into the end user cost. However, the manufacturer is typically the one making a killing.

 

I really and honestly feel for the importer / distributor - you guys have to deal with companies who's method of doing business is going the same way as the dinosaur, yet still are unwilling to adapt to new market conditions..... tough times ahead (the internet isn't exactly new, but major corporations aren't renowned for rapid adaption, hence the current banking crisis)

 

PPWTF2008-10-16 07:36:19

[BigGuy]

Also' date=' I think it's pathetic to come and start a thread on a forum likes Puzzler did. What do you have to prove? That you can have stock confiscated? Are you telling the other shops not to f*ck with you profits?

As long as I have been a member of the Hub, there's always been some or other distributor trying to knock CWC, and they always end up with egg on their faces. Why not try to fight CWC where they are kicking your asses? With good service and even better prices?


[/quote']

 

Well stated Hog. Service, people, it is about service. When will they ever learn?

[Ox_Wagon]

Service is the key.

I will happily pay more for an official Polar product because their service is so good.  I have to add it help that I am close to ther service centre.

[Flippa]

I think Bruce's comments are fair, in general. The official distributor has gone to a lot of trouble and cost to secure the distribution of that specific product including the carrying of sufficient spare parts etc.

 

However, and this is merely my personal experience, where does the consumer go if the official distributor cannot supply? I have been trying extremely hard to purchase a groupset through the official distributor (via my LBS) since approximately July of this year. To date, I have been told that the distributor does not have stock of certain of the components. I can have my groupset, but not with the components I want.

 

 

[PPWTF]

 

Service is the key.

I will happily pay more for an official Polar product because their service is so good.  I have to add it help that I am close to ther service centre.

 

I will happily pay more for an official product if the service is so good - however customer service seems to have been replaced in most retailers lexicon with (post sales) customer service = inconvenience

 

To many today just wanna grab for sales cash and not follow up. Thankfully a more 'community' focused retail sector, like cycling, does seems to have a better understanding of customer loyalty; that it is bought / exchanged / received in return for a of quality service.... either that or your business goes belly up!

 

[GoLefty!!]

I can't agree 100% with Bruce. He does make a good point in the outlay of the official distributor though.

 

However, If the distribution contract lies between Mavic France and Dragon Sports, then it is the supply contract betwen the two parties that is at fault, Not CWC's parallel importing. Dragon Sports could have an exclusivity of supply clause added which would push liability back to Mavic France to ensure parallel imports does not occur. I believ this may not be permissible under EU law because it limits competition and we all know what happens when you try that.

 

There is nothing illegal, or immoral about parallel importing.

If either supplier does not provide satisfactory service then the business with the best service will win the sale. This is called competition.

 

Moral grandstanding using financial outlay as a reason is hogwash. the official supplier needs to improve it's contract with it's supplier.

If someone else has a better supply chain then they are more competitive.

Also the 80/20 rule will apply here. 80% of sales will still go through the official channel, the othe 20 is a right off.

 

In the event of issues with items purchased abroad, I have dealt with the respective factories directly and they have honoured their warranties based on me supplying a serial number and having the purchase invoice.

 

So even thouh i understand the predicamentthat the distrbutor faces, there are other ways to remain competitive and still ensure you get 80% of the sales.

[Johan Bornman]

Wow' date=' serial numbers! What will they think of next!<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

 

Bummer, I cant find any serial numbers on any of the wheels I own, they must be all pirated!

 

Maybe we should get JB to give us some info on the serial numbers on hubs and rims of all the wheels he has build.  I personally have not seen any serial numbers on the shimano/campy hubs and the assortment of rims that I own.

 

  

[/quote']

 

I scratch my serial numbers onto the rim under the rim tape, using a scribe. I keep a record of when the wheel was built, to whom it was sold and if there were any anomolies in the build. Sometimes I even note some experimental twists and tricks.

 

Anyone who can forge my scratchy writing is welcome to pirate my wheels. Hubs and rims don't come with serial numbers but I do know that the complete Mavic wheels have serial numbers. I saw it only recently with the famous Mavic debate.

 

 

[Andrew Steer]

 

Well stated Hog. Service, people, it is about service. When will they ever learn?

 

So if someone's servicing your misses better than you, is that fine?

It's also about loyalty mate!

 

 

 

 

 

[Willehond]

 

Well stated Hog. Service' date=' people, it is about service. When will they ever learn?

[/quote']

 

So if someone's servicing your misses better than you, is that fine?

It's also about loyalty mate!

 

 

 

 

 

Loyalty?!

 

GET A DOG!

Willehond2008-10-16 07:54:35

[Bike Mob]

 

Well stated Hog. Service' date=' people, it is about service. When will they ever learn?

[/quote']

 

So if someone's servicing your misses better than you, is that fine?

It's also about loyalty mate!

 

 

 

 

 

 

Excellent Point!!